Egypt approves Russian nuclear financing amendment
4 February 2025The Egyptian House of Representatives has approved a report, previously ratified by the North African nation's Energy & Environment Committee, that amends the government financing agreement between Egypt and Russia over the El-Dabaa nuclear power plant in Matrouh.
The agreement secures a government export loan from Moscow to support the construction of Egypt’s first nuclear power plant.
According to a local media report, the decree was reviewed by a joint committee that included members of the Energy & Environment Committee, as well as representatives from the Planning & Budget, Economic Affairs and Foreign Relations Committees.
The amendments to the financing agreement aim to "align the loan's terms with the project's implementation schedule".
The report did not disclose the nature of the financing amendment that has been approved.
Financing details
Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.
MEED understands that the existing agreement entails an 85:15 project financing split between Russia and Egypt.
The project is expected to cost between $25bn and $30bn.
According to industry sources, the funds Russia is providing are payable over 22 years in 43 semi-annual installments, with the first installment due on 15 October 2029.
MEED understands Egypt can repay the loan in US dollars or Egyptian pounds, whichever suits the Russian party better, and that "a very affordable" 3% annual interest rate applies.
The power plant will be equipped with four Russian-designed, 1,200MW VVER reactor units.
When complete, the El-Dabaa nuclear power plant is expected to generate more than 10% of electricity production in Egypt.
The plant’s first reactor is scheduled to be operational in 2026.
Russia’s State Atomic Energy Corporation (Rosatom), the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.
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